Connecticut residents who fail to pay their taxes can face a number of penalties. Tax liens, for example, allow the government to make claims on property so, in the event the property is sold, the proceeds will go toward one’s tax debt. Those who think tax liens are kept private have another thing coming. They are a matter of public record and can affect far more than one’s property.
Tax liens are reported to credit agencies. This means that one’s credit score may drop and the ability to retain credit is significantly reduced. Information about tax liens or sales may be published, meaning one’s personal reputation may be jeopardized. Finally, a tax lien may show up on background checks, which can affect one’s ability to get a job.
What can people do if they find out they have tax liens on their property? First, find out how much tax is actually owed, and pay the debt in full — if possible. Second, work out a payment plan if necessary. Third, ask for the lien to be withdrawn so one can sell the property, but still agree to pay the amount owed. Finally, fourth, if the tax obligation has been met, but the lien remains on one’s credit report, contact the Internal Revenue Service of the state taxing authority to have it removed.
Tax liens are not anything that taxing authorities can place on property without warning. If a tax lien is threatened and then put in place, it is wise to take immediate action to get it removed. An experienced tax attorney may be able to help Connecticut residents with this.